HB 383-TRANSFER CERTAIN DNR DUTIES TO DCCED  3:51:48 PM CHAIR OLSON announced that the final order of business would be, HOUSE BILL NO. 383, "An Act relating to the powers and duties of the Department of Natural Resources, including transferring certain powers and duties to the Department of Commerce, Community, and Economic Development." CHAIR OLSON stated the committee previously heard HB 383. Public testimony was previously taken and was closed. 3:52:19 PM REPRESENTATIVE NEUMAN explained that he spent considerable time working with the Department of Natural Resources. He expressed concern with the department's oversight over the Division of Agriculture. He expressed concerns with the Agricultural Revolving Loan Fund (ARLF) being depleted to cover operating costs, which should be funded through the department. He expressed further concern that people must be actively engaged in agriculture to have a complete understanding of agriculture, including the cyclical nature of farming. Managers of the ARLF must have an understanding of the plight of farmers and work with them. He asked for clarification on the transfer of the banking function of ARLF. REPRESENTATIVE JAY RAMRAS, Alaska State Legislature, stated that under the bill the banking function would stay the same for ARLF. MARGARET DOWLING, Staff, Representative Jay Ramras, Alaska State Legislature, on behalf of the prime sponsor, explained that under HB 383, the structure of the Board of Agriculture & Conservation (BAC) and ARLF would stay the same. At the time of transfer to the Department of Commerce, Community, & Economic Development (DCCED), the department would make a decision where the BAC and ARLF would be located. She detailed that the board members, the statutory language that enables the board and provides authority remains the same. The structure of the ARLF remains same. The bill does not make any changes to the Division of Agriculture, but changes the departmental authority to the DCCED. 3:56:50 PM MS. DOWLING, in response to Representative Neuman, explained that nothing would change with respect to the function of the Division of Agriculture. This bill does not affect any of the function, but would just replace the DNR in Title 3 with the DCCED. The functions would stay the same, she stated. 3:57:57 PM REPRESENTATIVE RAMRAS clarified that the intent is not to tinker with the ALRF or the method of funding farmers, ranchers, and dairy farmers. He stated that this bill is an effort to reenergize the Division of Agriculture without disturbing the ARLF. The DCCED manages five other revolving loan funds and is sensitive to the constituency. He appreciated the concern, but the intent is not to make it more difficult or change any of the variables in how the ARLF operates. 3:58:54 PM REPRESENTATIVE BUCH asked if the sponsor would walk through the fiscal note and if this represents a transfer of funding. REPRESENTATIVE RAMRAS stated that the fiscal impact was covered at a previous hearing. The fiscal impact would be an increment for the DCCED and a decrement for the DNR. Thus, the fiscal note is neutral. 3:59:42 PM REPRESENTATIVE T. WILSON remarked that she brought up the bill at her constituent meetings and wanted to pass on comments. She explained that her constituents did not believe that the Division of Agriculture has received sufficient attention. Her constituents expressed concern that the Division of Agriculture offices were moved in Fairbank. She related that her constituents believed that the transfer may bring stability to the division and it "would not hurt to try." 4:00:29 PM REPRESENTATIVE NEUMAN thought more leadership for the "top on down" is a better way to go. He said, "I'm just not very comfortable with this right now, Mr. Chair." CHAIR OLSON related that the bill has two more committee referrals. 4:01:43 PM REPRESENTATIVE T. WILSON moved to report HB 383 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 383 was reported from the House Labor and Commerce Standing Committee.